MGKT Chapter 8
Card Set Information
MGKT Chapter 8
Cards from the slides and some terms from chapter 8
A Market Is...
people or organizations with
needs or wants, and with
the ability and
the willingness to buy.
A group of people that lacks any one of these characteristics is not a market.
People or organizations with needs or wants and the ability and willingness to buy.
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
The Importance of Market Segmentation
Markets have a variety of product needs and preferences
Marketers can better define customer needs
Decision makers can define objectives and allocate resources more accurately
Segment must be large enough to warrant a special marketing mix.
Identifiability and Measurability
Segments must be identifiable and their size measurable.
Members of targeted segments must be reachable with marketing mix.
Unless segment responds to a marketing mix differently, no separate treatment is needed.
Bases for Segmentation
Region of the country or world
Benefits of Regional Segmentation
New ways to generate sales in sluggish and competitive markets
Scanner data allow assessment of best selling brands in region
Regional brands appeal to local preferences
Quicker reaction to competition
Family life cycle
Market segmentation on the basis of personality, motives, lifestyles, and geodemographics.
Bases for Psychographic Segmentation
Segmenting potential customers into neighborhood lifestyle categories.
Combines geographic, demographic, and lifestyle segmentation.
The process of grouping customers into market segments according to the benefits they seek from the product.
Dividing a market by the amount of product bought or consumed.
A principle holding that 20 percent of all customers generate 80 percent of the demand.
Bases for Segmenting Business Markets
Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.
Business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one.
Tolerance for risk
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
Undifferentiated Targeting Strategy
A marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.
Concentrated Targeting Strategy
A strategy used to select one segment of a market for targeting marketing efforts.
Multisegment Targeting Strategy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
1.Assess the positions occupied by competing products
2.Determine the dimensions underlying these positions
3.Choose a market position where marketing efforts will have the greatest impact
A positioning strategy that some firms use to distinguish their products from those of competitors.
Distinctions can be real or perceived
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.
Price and Quality
Use or Application
Changing consumers’ perceptions of a brand in relation
to competing brands.
Family Life Cycle (FLC)
a series of stages determiend by a combination of age, marital status, and the presence of absence of children
an individualized marketing method that utilizes customer information to build long-term personalized, and profitable relationships with each customer
the place a product, brand, or group of products occupies in costumers' minds relative to competing offerings